Critical Review: LogicBio Therapeutics (NASDAQ:LOGC) & Cabaletta Bio (NASDAQ:CABA)

LogicBio Therapeutics (NASDAQ:LOGC) and Cabaletta Bio (NASDAQ:CABA) are both small-cap medical companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent recommendations and price targets for LogicBio Therapeutics and Cabaletta Bio, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LogicBio Therapeutics 0 0 2 0 3.00
Cabaletta Bio 0 0 4 0 3.00

LogicBio Therapeutics currently has a consensus target price of $20.00, indicating a potential upside of 202.57%. Cabaletta Bio has a consensus target price of $21.67, indicating a potential upside of 78.33%. Given LogicBio Therapeutics’ higher probable upside, analysts plainly believe LogicBio Therapeutics is more favorable than Cabaletta Bio.

Institutional & Insider Ownership

48.7% of LogicBio Therapeutics shares are owned by institutional investors. Comparatively, 68.4% of Cabaletta Bio shares are owned by institutional investors. 23.4% of LogicBio Therapeutics shares are owned by insiders. Comparatively, 6.5% of Cabaletta Bio shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares LogicBio Therapeutics and Cabaletta Bio’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LogicBio Therapeutics N/A N/A -$40.13 million ($1.78) -3.71
Cabaletta Bio N/A N/A -$16.94 million ($4.07) -2.99

LogicBio Therapeutics is trading at a lower price-to-earnings ratio than Cabaletta Bio, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LogicBio Therapeutics and Cabaletta Bio’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LogicBio Therapeutics N/A -101.85% -73.23%
Cabaletta Bio N/A -27.88% -21.44%

Summary

Cabaletta Bio beats LogicBio Therapeutics on 6 of the 9 factors compared between the two stocks.

About LogicBio Therapeutics

LogicBio Therapeutics, Inc., a genome editing company, focuses on developing medicines to treat rare diseases in patients with unmet medical need using GeneRide technology platform. The GeneRide technology is designed to integrate corrective genes into a patient's genome to provide a therapeutic effect. Its lead product candidate is LB-001 for the treatment of Methylmalonic Acidemia, a life-threatening disease that presents at birth. The company has a partnership with Children's Medical Research Institute to develop new viral vectors. LogicBio Therapeutics, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts.

About Cabaletta Bio

Cabaletta Bio, Inc. operates as a clinical-stage biotechnology company that focuses on the discovery and development of engineered T cell therapies for B cell-mediated autoimmune diseases. The company's proprietary technology utilizes chimeric autoantibody receptor (CAAR) T cells that are designed to selectively bind and eliminate B cells that produce disease-causing autoantibodies or pathogenic B cells. Its lead product candidate is DSG3-CAART, which is in Phase I clinical trial for the treatment of mucosal pemphigus vulgaris, an autoimmune blistering skin disease. The company's products under discovery-stage or preclinical development include DSG3/1-CAART for targeting pathogenic B cells in patients with mucocutaneous pemphigus vulgaris; MuSK-CAART for the treatment of patients with myasthenia gravis; and FVIII-CAART for use as an adjunctive therapy targeting a subset of patients with Hemophilia A. Cabaletta Bio, Inc. has a collaboration with the University of Pennsylvania; and research agreement with The Regents of the University of California. The company was formerly known as Tycho Therapeutics, Inc. and changed its name to Cabaletta Bio, Inc. in August 2018. Cabaletta Bio, Inc. was founded in 2017 and is headquartered in Philadelphia, Pennsylvania.

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